1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Generally, income from long term disability insurance is not taxable because the money you used to pay your premiums has already been taxed. This increases the value of your long term disability payments substantially, to not have taxes taken out, and is a great feature of long term disability insurance.
    Answered on August 16, 2014
  2. 410 POINTS
    Drew Ward
    Owner, LifeInsuranceForBusinesses.com, Atlanta, Georgia
    The taxation of disability payments depends on who has paid the premiums for the policy.

    If you pay premiums for your own disability policy then the benefit will not be taxable.

    However, if you have a group long term disability policy that is paid for by your employer then those premiums are taxed as ordinary income.
    Answered on August 19, 2014
  3. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>